Colorado-Real-Estate-Journal_431468

Page 8 - November 20-December 3, 2024 www.crej.com INSIDE F rom the constructionof tene- ments in the 1800s to thehigh- rise steeland concrete luxury residential towersbuilt today, for-renthousinghas comea longway.Butone constant is the useofwood tobuild rentalhous- ing.Over theyears,architectsand engineershavepushed the limitsof whatwood cando,and theadoption of the 2015 InternationalBuilding Codeallows this to continue. Not everyone ishappy though. Therehasbeen some recentback- lashabout thenumberof four-and five-storywood-frameapartments impactingDenver’sdowntown.With continueddemand forhousing,esca- lating construction pricesand theabil- ity toachieve even higherdensities under the recent IBC,wedon’tantic- ipate thenumber ofnewwood-frame buildingsadded to theDenver land- scapewilldimin- ish. Themost sig- nificantbenefit thenew IBCoffers wood-frame construction is the ability todesignapodiumbuilding basedon theoverallbuildingheight. Podiumbuildingswillno longer be restricted toonlyone levelof podium structurebelow thepodium deck. This givesdesigners theability to designa seven-story,midrisebuild- ingwith five levelsofwood-frame constructionover two levelsof con- cretepodium –allabove grade.With thisadditionalabove-grade levelof concrete, the flexibilityandoppor- tunities to increasedensity, reduce costorbothbecomepossible. Options includepulling the tra- ditionalbelow-grade levelparking outof the ground to save the costof building subterranean,which is typi- cal in traditionalpodiumdesigns. Anotheroptionwouldbe to leave the subterraneanparking,which allowsanadditional levelof residen- tialunitswithin the concretepor- tionof the structure, thus increasing density.Bothoptionswill change how thedesignworldand residen- tialdevelopers lookat thepotential ofa site. When evaluatinganapartment site,adeveloper typically considers fourwood-frameapartmentdesigns: Photography©BradNicol The2015 InternationalBuildingCodeofferswood-frame construction theability todesignapodiumbuildingbasedon theoverallbuildingheight.Podiumbuildingswillno longerbe restricted to only one level of podium structure below the podium deck. PleaseseePage24 October 2015 New wood-frame codes allow for more flexibility NathanSciarra, AIA Studio director, KTGYArchitecture + Planning,Denver 1536 Cole Blvd., Building 4, Suite 300, Lakewood, CO 80401 | 303-623-1148 | www.crej.com Jon Stern Publisher & Founder x 101 jstern@crej.com All rights reserved. No part of this publication may be stored, reproduced, or transmitted in any form or by any means without the publisher’s prior written permission. All contributed articles published in the Colorado Real Estate Journal represent solely the individual opinions of the writers, and not those of the Colorado Real Estate Journal. REPORT AN ERROR IMMEDIATELY (ISSN 1060-4383) Vol. 33 No. 22 www.crej.com EDITORIAL CONSULTANT: Jill Jamieson-Nichols PRODUCTION/GRAPHIC DESIGN: Heather Lewis ext.108 hlewis@crej.com CREJ CONFERENCE SERIES: Jon Stern ext.101 jstern@crej.com ADVERTISING: Lori Golightly ext.102 lgolightly@crej.com CUSTOMER SERVICE: Jolene Wollett ext.103 jwollett@crej.com EDITORIAL Avalon Jacka, Reporter Sales, Lease and New Development Projects: Office, Industrial, Multifamily, Retail, Health Care, Senior Housing, Hotel, Land Finance Transactions ext.107, ajacka@crej.com Kris Stern Associate Quarterlies Publisher: Office & Industrial Properties, Retail Properties, Multifamily Properties, Property Management, Health Care, Senior & Life Sciences Editor: Construction, Design & Engineering News; Property Management News; Who’s News; and Expert Articles, including Law, Accounting and Finance Publisher: Building Dialogue ext. 109, kostern@crej.com MARKETING Lori Golightly, Director of Client Services Advertising: Print & Digital Conferences: Exhibitor/Sponsor Information ext. 102, lgolightly@crej.com Office by Avalon Jacka WESTMINSTER – A nearly 40,000-square-foot building that will be home to the first Work Simple office project traded hands for $4 million. Sheridan Commercial Inc. sold the 39,826-square-foot building at 9191 Sheridan Blvd. to Koelbel and Co. and Hemmeter Ven- tures in October. David Tilton and Trent Rice of Pinnacle Real Estate Advisors LLC represented the buyers, while David Hart of The Colorado Group represent- ed the seller in the transaction. The property last sold in 1994 for $2.6 million, according to Jeffer- son County public records. The buyers plan to use the asset to build out the first loca- tion of Work Simple, a “work- near-home” office concept that intends to provide flexible work environments located in subur- ban markets and easily accessible to target users across the country. Koelbel and Co. and Hemmeter Ventures partnered last year to introduce the concept. “This building proved the perfect first Work Simple office thanks to its ideal location just off the Boulder Turnpike, abundance of parking and myriad small professional services businesses in the surrounding area,” said Mark Hemmeter, Work Simple co-founder and CEO. “This is a solid building with significant vacancy – the key elements of the Work Simple model.” Built in 1983, the Class B prop- erty offers controlled access, according to a LoopNet listing. The building offers accessibility to Boulder and Denver via U.S. Highway 36, with the nearest entrance to the highway two blocks away. Work Simple will offer Class A office space with configurable suites for a single person up to 100 employees, as well as con- ference rooms and shared meet- ing spaces that can accommo- date small meetings and teams, including a boardroom equipped with secure connectivity. Individ- ual offices will measure approxi- mately 100 sf. The three-story property is cur- rently occupied by six traditional tenants. Koelbel and Hemmeter expect the building to eventually accommodate about 200 small businesses. The buyers will make “sub- stantial improvements” to the building, including remodeling a former bank space and the lobby into new amenities, which will include a training room, two conference rooms, and a drop- in and coworking space, all sur- rounding a new break area and kitchen. Approximately 14,000 sf of vacant office space will be converted into month-to-month furnished, turnkey offices for individuals and small teams. “Many workers can’t or don’t want to work from home any- more, but they also don’t want long commutes,” Hemmeter said. “Work Simple is the solution for working near home, when work- ing from home doesn’t work.” As workplace disruptions and difficult financial markets have led to an influx of distressed Class B office product in sub- urban markets, many office properties have become “deeply undervalued,” according to some experts. Work Simple aims to take existing distressed buildings and create functional workplace solutions for individuals or small businesses who want to work away but proximate to home. “Coming out of the pandemic, we saw a need in the industry for the next evolution of workspace, as people and companies recog- nized that working from home is not a long-term solution and neither was the large downtown office lease,” said Carl Koel- bel, Koelbel and Co. CEO. “We believe the Work Simple model is the answer.” The purchase is the first of many planned office acquisitions for the concept. Work Simple expects to acquire and reposi- tion more than 50 buildings in the next five years, then exit to a wide array of possible buyers. The team anticipates bringing the model to dozens of markets across the country, with initial target areas including the Rocky Mountain, Midwest, Southeast and Northwest regions. The flex- ible work company will own its own buildings, eliminating the risk many flexible work provid- ers see when renting space in buildings owned by unrelated landlords. Other News n DENVER – A 6,358-square- foot office building in City Park West sold for $2.08 million in October. Collaborative Healing Ini- tiative Within Communities acquired the building at 1525 Josephine St. from Unbridled Wealth. Both the buyer and seller were represented by Cody Stambaugh, Liz Morgan and Kyle Moyer of Pinnacle Real Estate Advisors LLC. “It was a pleasure collaborat- ing with everyone involved, and we’re grateful to work alongside such wonderful individuals who share strong core values,” said Stambaugh. Stambaugh said the buyer will use the building as a “forever home” to carry out its mission, which is to “build women’s eco- nomic, social and cultural capital because powerful women build healthy families and thriving communities.” The seller will continue its operations in a new space in Littleton. The buyer assumed debt with attractive terms from Ent Credit Union, Stambaugh said. Work Simple buys 1st building for “work-near-home” concept Work Simple acquired the nearly 40,000-square-foot office building at 9191 Sheridan Blvd. to use as its first location for its “work-near-home” concept. Please see Collaborative, Page 20